Basis flat; harvest approaches southern Kansas
Basis bids for hard red winter wheat held steady at grain elevators in the southern U.S. Plains on Friday and protein premiums were unchanged as market players waited for the harvest to expand.
* Combines rolled in Oklahoma this week despite scattered rains, with the wheat harvest about 20% complete, according to Plains Grains Inc, a trade group. The Texas harvest was 29% complete while the harvest in Kansas was barely beginning.
* Protein premiums for wheat delivered by rail to or through Kansas City were unchanged on Friday.
* In a monthly crop production report, the U.S. Department of Agriculture (USDA) raised its estimate of the U.S. hard red winter wheat crop to 525 million bushels, up 2% from 514 million a month ago and above an average of analyst expectations.
* K.C. July hard red winter wheat futures (KWN3) settled down 7 cents at $7.97-3/4 a bushel, pressured in part by the larger USDA crop estimate. September (KWU3) ended down 10 cents at $7.93-3/4 a bushel.
Basis values are quoted against futures in cts/bu:
Current | Previous | Cash | |||||
basis | basis | price | |||||
KANSAS | |||||||
Wichita | -5 | + | N | -5 | + | N | $7.93 |
Newton | -30 | + | N | -30 | + | N | $7.68 |
Goodland | -35 | + | N | -35 | + | N | $7.63 |
TEXAS | |||||||
Gulf track* | +100 | + | N | +100 | + | N | $8.98 |
Galveston** | +100 | + | N | +100 | + | N | $8.98 |
OKLAHOMA | |||||||
Enid | -10 | + | N | -10 | + | N | $7.88 |
Catoosa | +45 | + | U | +45 | + | U | $8.39 |
NOTES
H = March, K = May, N = July, U = September
Z = December; UNQ = Unquoted bids
0 =Sp Option price NC = No comparison
* = No. 1 12% hard winter wheat, rail bids
** = Ordinary protein, rail bids
LINKS:
* K.C. HRW wheat protein scales
* U.S. weekly wheat crop progress
* U.S. forward basis (WHEAT/BASIS)
* U.S. Midwest cash grain PM
* U.S. CIF/FOB Gulf Grain